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Tracking Ethereum Block Transaction Complexity and Gas Usage With On-Chain Data

by CryptoDataDownload



Ethereum Computational Effort
Ethereum transactions require gas to execute, and the total gas used in a transaction depends on the computational effort, storage needs, and complexity of the actions performed. Before diving into the simple calculation, you might be wondering: "what is gas?" This is a unit that measures the amount of computational effort required to execute operations on the Ethereum network, such as transactions or smart contract executions. Every operation has a fixed gas cost, determined by the Ethereum network. Secondly, what is meant by the "Gas Price"? This is the amount of Ether a user is willing to pay per unit of gas to have their transaction processed by miners (or validators in the context of Ethereum 2.0 and its Proof of Stake model). The gas price is usually measured in gwei, where 1 gwei equals 1 billionth of an Ether.

So for a group of transactions, the total gas used is the sum of the gas used by all those transactions. This metric reflects the total computational resources consumed to process these transactions. Some transactions are more complex than other transactions to process on the network. Simple transactions, like transferring Ether, require a relatively small, fixed amount of gas. In contrast, interactions with smart contracts, such as executing functions within decentralized applications (DApps), can be much more gas-intensive. These operations may involve complex computations, state modifications, or interactions with other contracts, all of which consume more gas. So the higher the complexity, the more smart contracts and transactions are being processed by the eth network, which is a positive indicator.


We track the Ethereum on-chain complexity score each day and make it available by both our API and our Plus+ Files



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